What better way to start the fall semester but with a discussion of the importance of productivity (see Chapter 1, pages 13-18). There we write: “only through increases in productivity can the standard of living improve.” For well over a century, the U.S. has been able to increase productivity at about 2.5% per year, meaning U.S. wealth doubled every 30 years. But in the past decade, the news is not good. As The Wall Street Journal’s (Aug. 10, 2016) front page headline declares: “Productivity Fall Imperils Growth.”

This longest slide in worker productivity since the late 1970s is haunting the U.S. economy’s long-term prospects. Productivity in the 2nd quarter was down 0.4% from a year earlier, the first annual decline in 3 years. That was a further step down from already tepid average annual productivity growth of 1.3% in 2007 through 2015, itself just half the pace seen in 2000 through 2007, and the trend shows little sign of reversing. Productivity has slowed dramatically since the information technology-fueled boom of the late 1990s, when strong productivity gains translated into robust growth for household incomes and the overall economy.

Adds Fed Chair Janet Yellen: “the outlook for productivity growth is a key uncertainty for the U.S. economy and a very difficult question that has divided the economics profession. Some are relatively optimistic, pointing to the continuing pace of innovations that promise revolutionary technologies, from genetically tailored medical therapies to self-driving cars. Others believe that the low-hanging fruit of innovation largely has been picked and that there is simply less scope for further gains.”

Throughout our text we examine how to improve productivity through operations management.

Classroom discussion questions:

1. Why is productivity important to OM managers?
2. What can be done to raise productivity levels in a company? In a country?

The generativity of digital platforms and ecosystems enables opportunities for distribution innovation. Discuss what platform owners should do to mobilise digital resources and leverage the innovation potential of multiple actors in the digital ecosystem.

Research standardization, flexibility and innovation in product/process design. How does this information apply to 3M, an innovative company with a variety of products? You will need to provide proof of 3M’s innovation, flexibility, and/or standardization.

• Review Chesbrough's Principles of Open Innovation.
• Pick three out of his six principles of open innovation.
• Analyze and evaluate the selected statements.
• Provide at least one example supporting the selected statements.

Question 4

A bolt weighting 10 N is accidently dropped down a 4 m long vertical cast-iron pipe which is closed by means of a rigid flange at the end. Calculate:

4.1       The instantaneous stress induced in the material of the pipe if the inside diameter of the pipe is 200 mm and the pipe wall thickness is 10 mm.                        

4.2       The instantaneous elongation of the pipe.                                                     

4.3       The gradually applied load that would produce the same stress as in 4.1.   

            E = 140 GPa

Question 4

A bolt weighting 10 N is accidently dropped down a 4 m long vertical cast-iron pipe which is closed by means of a rigid flange at the end. Calculate:

4.1       The instantaneous stress induced in the material of the pipe if the inside diameter of the pipe is 200 mm and the pipe wall thickness is 10 mm.                        

4.2       The instantaneous elongation of the pipe.                                                     

4.3       The gradually applied load that would produce the same stress as in 4.1.   

            E = 140 GPa

Analyze, Discuss and base properly

Question num. one

Of all the personal and professional attributes that a covenant negotiator must have, which do you consider to be the most important and significant that you must possess? Prepare a list of the attributes that a negotiator should have and indicate the most important in your opinion and why.

Question num. 2

Collective bargaining has long been viewed by scholars as an "art." More recently, however, scholars have begun to see collective bargaining as a "science." Explain your position on this statement. Indicate whether you agree or disagree and say why. Be detailed in your answer. Because some think it is an art and others think it is a science.

Question num. 3

From an employer's point of view, what advantages and disadvantages do you see in reducing a grievance to a formal written complaint. Do you consider that a verbal complaint is better than a formal written complaint? Be specific about the advantages and disadvantages of each modality. Do not forget that your opinion is requested from the employer's point of view

Question num. 4

Why might the management of a company or the union itself prefer not to have an arbitration clause contained in a negotiated collective agreement? What use is arbitration? Do you consider arbitration to be a useful tool for conflict resolution? You would recommend negotiating a collective agreement that does not contain an arbitration clause. Be highly specific in your opinion.

Question num. 5

Generally, collective agreements contain clauses regarding wages and the subsequent adjustments that must be made during the term of the agreement. If you are a union representative and are negotiating an agreement, what would be the elements related to wages that you would negotiate for the benefit of your enrollment. What compensation elements would you include in your agreement as part of your salary definition. What if any would you suggest to address gradual wage increases, namely: percentage increases, performance-based increases, increases based on some economic formula, or increases based on government determinations? Would you prefer a combination of factors? As structuring its clauses related to wages. Be highly specific. Do not forget that you are a representative of the workers.

Tommy has recently graduated from SUSS and has joined a well-known retailer that operates 3 department stores in Singapore. His job function is that of a business analyst. It has been well-reported that retail business in Singapore is on the decline and his employer would like to determine if the forecast for the next few years will be equally bad. Tommy has been tasked to perform the analysis and his output will provide insights in the company's hiring and expansion plan in Singapore.

The first thing Tommy did was to download the Retail Sales Index data from the Department of Statistics Singapore website. He specifically extracted the data for "Department Stores" from Q1 2008 to Q4 2018. (2017 is set as the base year with Index = 100). Refer to data below:

Year/Quarter Retail Sales Index (Department Stores)

2008 1Q 92.4

2008 2Q 93

2008 3Q 84.9

2008 4Q 105.3

2009 1Q 87.1

2009 2Q 88.6

2009 3Q 83.2

2009 4Q 103.6

2010 1Q 94.3

2010 2Q 93.9

2010 3Q 90.7

2010 4Q 109.3

2011 1Q 99.6

2011 2Q 99

2011 3Q 95.8

2011 4Q 119.3

2012 1Q 104.9

2012 2Q 99.9

2012 3Q 95

2012 4Q 117

2013 1Q 106.1

2013 2Q 100.9

2013 3Q 97.5

2013 4Q 118.6

2014 1Q 107.1

2014 2Q 98.7

2014 3Q 95.7

2014 4Q 117.6

2015 1Q 108.2

2015 2Q 101.1

2015 3Q 98.8

2015 4Q 114.4

2016 1Q 103.8

2016 2Q 93.9

2016 3Q 93.2

2016 4Q 112.9

2017 1Q 100.3

2017 2Q 93

2017 3Q 94.6

2017 4Q 112.1

2018 1Q 102.7

2018 2Q 92.3

2018 3Q 93.6

2018 4Q 112.8

(a) Use the techniques of time series modelling and with justifications, discuss the considerations on how Tommy would forecast the quarterly Retail Sales Index in 2019 and 2020.

(b) Upon confirmation of the forecast technique to undertake in Part 3(a), determine the quarterly RSI forecast in 2019 and 2020. You are required to show the essential steps in deriving the forecast and comment on any limitations of your technique.

Make the following journal entries in good form.

1. On January 1, 2020, Entity A sold common stock for $30,000 to investors.

2. On January 3, 2020, Entity A performed services for Entity B for $1,500 on account.

3. On January 5, 2020, Entity A performed services for Entity C for $750 and Entity C paid.

4. On January 7, 2020, Entity A purchased a new computer (office equipment) from Best Buy for $500, paying $100 down, the rest on account.

5. On January 20, Entity B paid Entity A in full (see item 2).

6. On January 30, Entity A paid Best Buy for the computer (see item 4).

7. On January 31, Entity A received its utility bill for $150 and paid it.

In Chapter 5, the book touches on Diffusion of Innovation on page 152 but I wanted to provide you with a little more detail on the topic. It's really important when you think about change- this could be the kind of change that comes when you develop a new product, modify an existing one, or make any kind of organizational change. It's all about how to people adopt (or accept) innovation.

The process by which the use of an innovation- whether a product, a service, or a process- spreads throughout a market group, over time and across various categories of adopters is diffusion of innovation. The theory around diffusion of innovation helps marketers understand the rate at which consumers are likely to adopt a new product or service. It also helps them to identify potential markets and predict sales for their new products.

In the diffusion of innovation theory, five adopter groups have been identified: innovators, early adopters, early mainstream, late mainstream, and laggards (or lagging adopters). I've attached a visual representation of the diffusion of innovation- you will notice it makes a bell curve.

Innovators- are buyers who want to be the first to have a new product or service. They enjoy taking risks and are regarded as highly knowledgable. They are generally very well informed about a certain product category. While they represent only 2.5% of the total market for a new product, they are crucial to the success of any new product because they usually talk a lot about the products and review them vocally.

Example: Think of a person who drives a self-driving car prototype as an innovator OR think of Steve Jobs and the folks at Apple as they created iPhones/iPads, etc.

Early Adopters- This group consists of about 13.5% of all buyers. They generally don’t take as much risk as innovators (they wait to see what innovators say about a product) but they are regarded as opinion leaders for particular product categories as the other three buyer categories often rely on their feedback.

Example: When the iPhone was first released, the very first buyers would be early adopters.  

Early majority- this group represents about 34% of all buyers. This group is crucial because a product usually doesn’t become profitable until this large group purchases it. If this group never becomes large enough, the product or service can fail. The early majority doesn’t take as many risks and tends to wait until the bugs are worked out of a particular product or service.

Example: When the bugs were worked out on the iPhones, this group bought. They waited until the product was purchased and reviewed by the early adopters.

Late majority- this group also represents about 34% of all buyers. This is the last group of buyers to enter a new product market. When they do, the product has achieved its full market potential. By the time this group enters the market, sales tend to level off or may be in decline.  

Example: After several versions of the iPhone were released, they finally decided to ditch their Blackberry and purchase.

Laggards- this group represents about 16% of the market. These consumers like to avoid change and rely on traditional products until they are no longer available.

Example: Laggards STILL use flip phones. They will probably use flip phones until they are no longer manufactured. They resist change at all costs.

I use the example of phones but it's important to keep in mind that the Diffusion of Innovation can apply to just about anything. It's also important to remember that people are not set in their adopter group for every product- it can vary. For example, my stepdad would be a laggard when it comes to phones (he still uses a flip phone). However, he might be considered an early adopter or early mainstream when it comes to golf clubs. He's much more likely to purchase a newer model of golf club than a new phone. So....don't think of people as being stuck in their adopter group, it can certainly vary based on the product/service/process.

What affects the rate of adoption?

Some of the things that affect the rate include:

Relative advantage- this is the degree to which the innovation appears superior to existing products. Example: Electric cars were adopted quickly because of their advantage over gas powered cars.

Compatibility- The degree to which the innovation fits the values and experiences of potential customers. Example: Electric cars are driven the same way as gas powered cars so they fit the experiences of drivers.

Complexity- The degree to which the innovation is difficult to understand or use. Example: This is where self-driving cars may struggle because it's hard to understand how that could be safe.

Divisibility- The degree to which the innovation may be tried on a limited basis. Example: consumers can test-drive electric or self-driving cars which helps increase the adoption rate.

Communicability- The degree to which the results of using the innovation can be observed or described to others. Example: If you can easily describe or demonstrate how to use a self-driving car and how the technology works, you will increased adoption.

Discussion Board Assignment Instructions:

1. Identify a product or service you use where you may be considered an early adopter. Explain.

2. Identify a product or service you use where you may be considered early mainstream or late mainstream. Explain.

3. Identify a product or service you use where you may be considered a laggard. Explain. (We are all laggards in some area. Confession- I still love have the old school Uggs but I don't wear them in public anymore).